SGA report says take up of solar could drive up energy bills

A new report says that an increase in the use of electric cars and a greater demand for solar panels could drive up energy bills.

Smart Grid Australia (SGA) is advocating the use of smart meters which, its report says, could help consumers reduce their energy consumption by telling them to switch off during peak times.

Technology would reduce the need for energy companies to expand their infrastructure to deal with demand on days where usage is increased - such as on hot days.

The smart meters have only been rolled out by the Victorian state government, but have been plagued by big budget blowouts.

As reported in The Australian, the federal energy minister Martin Ferguson has backed the report and said that what will drive innovation in the industry is competition - he said electricity prices will drop as a result.

The SGA president said usage of solar by households was putting pressure on the network as it was built to distribute electricity to buildings and not receive it.

Talk to a comparison and switching service about whether there is a better deal out there which suits your energy needs.